Decreasing America's Well-Being?

Milton Friedman was once (probably more than once) asked:

how the US can take advantage of the diversity of its population in order to maintain the well-being of all its citizens

He responded that the answer is straightforward:

by reducing the role of government

How does this apply to education? Well, most people believe that education provides people with the opportunity to improve their lives. That it gives them the freedom to explore their interests and to pursue a better life. It is somewhat ironic that the government is neck deep in financing education, and increasingly more involved in matters other than financing it (regulations, curricula matters, labor relations, etc).

According to the Friedman's school of thought, the increasing role of government in education is leading us in opposite the intended directioin of increasing the well-being of people through education. This is not to say that I advocate that schools be given a free lunch (ie - public subsidies with no strings attached). I just find it paradoxical that the same schools who advocate that education is the key to increasing the well being of people and society are also champions of obtaining more and more taxpayers funds.